Food Industry is Moving Slowly, Very Slowly, to Innovate its Food Product and its Business.

Consumer staple sector might be the most slowly growing one, compared to technology sector. As the prior article suggested, however, there are many indicators that food industry is innovating its products and its business models.

Nestlé keeps its keen eye on the ball namely the most promising markets. For example, global pet food  has jumped to 61% higher than 2010 according to Euromonitor. Likewise, in 2020, US pet owners have increased their spending 9.39% higher than spending in 2018, $90.5 billion (Chaudhuri, 2020, June 15). Pet food and treats are major portion of the spending, which is the revenue of Purina pet food grow steadily. Purina is a business of Nestlé global conglomerate.

Recently, Nestlé made a bet on health science business, allergy treatment. First, Nestlé started purchasing shares of Aimmune in November 2016 and then decided to acquire the company in August 2020 (Bugault, 2020, August 31; Globenewswire, 2020, August 31). The term of transaction is to buy all the outstanding shares of common stock, as Nestlé already owned 25.6% of Aimmune. Based on this bid, Nestlé is going to sell pet foods, treats, and allergy treatment with them. If you think of who pay for all, they might be the same target customers, head of household who might be interested in bulky purchase from one company at good deals.

Cite as:

Rachel Kim (2020, September 9). Food Industry is Moving Slowly, Very Slowly, to Innovate its Food Product and its Business, The Blue Ocean Management, Retrieved from: https://theblueoceanmanagement.com/category/theblueoceanmanagement/market-trend-foresight/

References:

Bugault, 2020, August 31, Wall Street Journal.com

Globenewswire, 2020, August 31, GlobeNewsWire.com

Chaudhuri, 2020, June 15, Wall Street Journal.com

 

Socially Responsible and Conscious Eaters Welcome Beyond Meat &Food Innovation

Now more than ever, socially responsible and conscious customers look for items without feeling sorry for animals. Most new makeup products carry the label saying no animal experiment or no animal cruelty in short. Vegetarians are proud of themselves in this regard. According to the Vegetarian Blogs, 254 million adults are casual vegetarians; 116.8 million are interested in becoming ones.

Meanwhile meat lovers argue that they care for animals. Their punchline is or used to be that they cannot give up on taste of beef barbeques and grilled hotdogs. Beyond Meat is a maker and seller of plant-based meat, who started its business with loyal customers in California.

In 2019, Beyond sold $40.2 million and it increased to $97.1 million in 2020 first quarter. Possible reason might be that the company launched Chinese market via Starbucks. Tyson Foods had to reduce its production due to Covid-19 pandemic (Chin, 2020, May 5).

 

Cite as:

Rachel Kim (2020, September 7). Socially Responsible and Conscious Eaters Welcome Beyond Meat & Food Innovation, The Blue Ocean Management, Retrieved from: https://theblueoceanmanagement.com/category/theblueoceanmanagement/market-trend-foresight/